Oklahoma

FUNDING PRIORITIES FOR OKLAHOMA P-12 AND HIGHER EDUCATIONS

This past year, the state of Oklahoma experienced two mid-year revenue failures. The first of these forced a 3% cut to state agencies in January, while the second was announced in March forcing an additional 4% cut to all agencies. The legislature reduced the cuts to Common Education from 7% to 3% with supplemental appropriations. The State Department of Education distributed these cuts across many funded line item allocations to lessen the cut to the funding formula. The state board of education distributed $2,426,721,434 to school districts in FY 2017, representing 2.34% less than the FY 2016 appropriation. Higher education was subject to the deepest cut in FY 2017, resulting in a 15.9% reduction from the initial FY 16 funding allocation. State funding for higher education in Oklahoma has fallen 21.7% per student since 2008.¹

Policymakers and education leaders have made efforts to alleviate the effects of these cuts. Governor Mary Fallin proposed allowing local school districts added financial flexibility by allowing ad valorem dollars to be used for teacher pay and benefits if local officials deem it prudent and necessary.²

The House of Representatives passed HB 2531 that required all online companies to collect sales taxes from online transactions, which will add additional revenue to the state's general revenue fund. Additionally, more than 100 Oklahoma school districts have adopted a four-day school week to reduce costs.

CHANGES TO FUNDING FORMULA FOR OKLAHOMA P-12 AND HIGHER EDUCATION

The cuts produced by the state revenue failure continued to negatively affect the already downward trending factor for the state funding formula. The cuts caused the funding per weighted average daily membership to change from the initial $3,075.40 to the final allocation of $3,034.60. A decrease of $40.80 with an overall 1% increase in enrollment from FY 2015 to FY 2016,³ which includes both the foundation aid factor and the salary incentive aid factor of the sate funding formula. The Oklahoma Legislature has subsequently created a task force to review the state education funding formula, evaluate funding sources, and analyze the K-12 system blueprint.⁴

PRESSING ISSUES AFFECTING OKLAHOMA P-12 AND HIGHER EDUCATION FUNDING

University of Oklahoma President David Boren led an effort to enact state question 779, which would include a one cent sales tax that would be used as additional funding across multiple educational agencies: Common education 69.5% for a $5000 teacher raise, higher education 19.25%, early childhood education 8%, and Oklahoma Department of Career & Technology Education 3.25%. Though the state question failed in a statewide vote of the electorate in November 2016, the Oklahoma Legislature is under pressure to increase teacher salaries this session. Governor Fallin proposed in her 2017 State of the State address an across the board teacher salary increase of $1000, at an estimated cost of $60 million. She has proposed an increase of $30 million towards classroom instruction and $35 million in flex benefit allowance for common education.⁵

The extremely low teacher salaries in the state are continuing to entice Oklahoma teachers to leave the state or leave the profession all together. The state approved close to 1000 emergency certifications for individuals who are completely new to the profession. Currently, 17.5% of teachers are categorized as "unqualified" because they do not have a standard teaching certificate.⁶ In the midst of a teacher shortage, schools are turning to teacher's aides, teacher assistants, and paraprofessional to help fill the gap with a 13% increase since FY 2011.⁷

FORCES DIVERTING FUNDS FROM TRADITIONAL OKLAHOMA PUBLIC SCHOOL DISTRICTS: TRENDS IN STATE FUNDING FOR PUBLIC INSTITUTIONS

Tax cutting has been extremely popular in Oklahoma. The state income tax rate cut has already cost common education $356 million,⁸ and another trigger is set in FY 2017 for a further loss of 147 million.⁹ This could cause an additional loss in funding for education.

SUMMARY OF THE STATE OF OKLAHOMA

In FY 2015-16, 48.3% of state appropriations were...